Capitalizing on India's Auto-Rickshaw Sector

India's Bajaj Auto company introduces an ultracheap small car focused on the country's rickshaw industry. Meanwhile, an unrelated study finds that the unorganized auto-rickshaw sector presents a huge business opportunity.

1 minute read

January 6, 2012, 11:00 AM PST

By Chris Steins @planetizen


India's Bajaj Auto, known for making motorcycles and rickshaws, calls it's newest product, the RE60, a "four wheeler", which is expected to cost around $2,750, or about $500 more than a traditional rickshaw.

"Executives say they have no plans to market it to average consumers. Instead, they are aiming for drivers of rickshaws, which are powered by motorcycle engines and operate as short-distance taxis in India. The RE60 offers features not found on current rickshaw models, including seat belts, doors and a hard top. It will have windows, although ones that fold out rather than roll down," write authora Vikas Bajaj and Sruthi Gottipati.

Auto-rickshaw services in Indian cities are predominantly unorganized, where services are provided by individual owners and operators competing against each other for the passenger market. This structure, coupled with an improper governance framework, has created significant problems for both drivers and passengers, and it has resulted in a variety of social, economic and environmental problems. A new study by EMBARQ India recommends implementation of a system similar to the taxi industry in the United States.

Thanks to Jeffrey Riecke

Tuesday, January 3, 2012 in The New York Times

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Close-up on Canadian flag with Canada Parliament building blurred in background.

Canada vs. Kamala: Whose Liberal Housing Platform Comes Out on Top?

As Canada votes for a new Prime Minister, what can America learn from the leading liberal candidate of its neighbor to the north?

April 28, 2025 - Benjamin Schneider

Hot air balloons rise over Downtown Boise with the State Capitol building visible amidst the high rises.

The Five Most-Changed American Cities

A ranking of population change, home values, and jobs highlights the nation’s most dynamic and most stagnant regions.

April 23, 2025 - GoodMigrations

Conductor walks down platform next to Amtrak train at station in San Jose, California.

Op-Ed: Why an Effective Passenger Rail Network Needs Government Involvement

An outdated rail network that privileges freight won’t be fixed by privatizing Amtrak.

15 minutes ago - Streetsblog USA

Aerial view of flooding during Hurricane Helene in North Carolina.

‘Quality Work, Fast’: NC Gears up for Homebuilding After Helene, Trying to Avoid Past Pitfalls

The state will field bids to demolish, repair and rebuild homes in the mountains. After struggles in eastern NC, officials aim to chart a different course.

1 hour ago - NC Newsline

Washington

Washington State’s Parking Reform Law Could Unlock ‘Countless’ Acres for New Housing

A law that limits how much parking cities can require for residential amd commercial developments could lead to a construction boom.

May 1 - Streetsblog USA

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.